BUSINESS DEVELOPMENT UPDATE Issue 72 December 30, 2019

A publication of Bay Area Houston Economic Partnership

Issue 72 – December 30, 2019

www.bayareahouston.com

In this Edition...

Commercial/Office/Industrial Development Retail / Hospitality Development Residential Development Infrastructure News and Everything Else!

Bay Area Houston Economic Partnership (BAHEP) is a member-driven organization that provides leadership to stimulate regional economic development and employment in a range of industries such as specialty chemicals and plastics, advanced manufacturing, maritime, aviation, aerospace engineering, healthcare and biotechnology, and tourism. BAHEP partners with 270 member companies, 14 cities, Galveston County, Harris County, Houston Airport System, and Port Houston in southeast Texas to foster economic vitality through regional collaboration.

Please feel free to pass this e-newsletter along to others who would enjoy it, and kindly credit Bay Area Houston Economic Partnership.

Commercial / Office / Industrial Development Medical news …

Medistar Corporation announced the development of Medical Behavioral Hospital of Clear Lake that will be operated by NeuroPsychiatric Hospitals. At full operation, the 92-bed hospital is projected to have up to 200 employees and approximately 18 providers in psychiatry, internal medicine and neurology. Located at 16850 Buccaneer Lane in Houston, the hospital is now in construction and scheduled to open in mid-2020. This will be NPH’s sixth hospital and among only a select number of hospitals nationwide that focus on treating patients with psychiatric issues who also suffer with complex medical and/or neurological conditions.

Houston Methodist Clear Lake Hospital broke ground on its $40 million expansion project in Nassau Bay: a sixstory 150,000 SF medical office building. It will be home to Houston Methodist’s Orthopedics & Sports Medicine group, as well as physical therapy. Plans are to open the facility in 2021. Additionally, a new entrance from NASA Parkway to the hospital campus is underway.

Manufacturing news …

Next Wave Energy Partners will construct a new alkylate production facility adjacent to the Houston Ship Channel at the company’s 53-acre site in Pasadena. Next Wave will convert a portion of the ethylene supply to alkylate; initial production is expected by mid-2022. The project will create 750 construction jobs and 30 direct permanent jobs at completion. Alkylate is a valuable gasoline blending component that is one of the cleanest petroleum products that can be produced. Read more here: https://www.areadevelopment.com/newsItems/11-21-2019/nextwave-energy-partners-pasadena-texas.shtml

Recent lease transactions … 

Intuitive Machines expanded and renewed its lease to 22,000 SF at 3700 Bay Area Blvd. in Pasadena.

BAHEP member Derrell Curry / Savills USA represented the tenant; Parker Duffie / CBRE for the landlord.

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18,500 SF - PTR Holland Group leased an industrial building at 822 E. Sam Houston Pkwy (BW 8) in Pasadena at Beltway-225 Business Park. There’s another building available for lease at the industrial park

plus additional land for a build-to-suit project. Travis Land / NAI Partners represented the landlord, a subsidiary of United Equities, a BAHEP member. 

8,000 SF – Protec Equipment Resources leased at 14251 Gulfstream Park Drive in Houston. The company provides sales and rentals of electrical test and measurement equipment. Representing the landlord: Coe Parker / Cushman & Wakefield; for the tenant: Melissa Gerber Brams / Gerber Realty.

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2,500 SF - Marshall Institute opened a facility at 149B Magellan Circle inside Magnolia Court Business Park. The company, headquartered in Raleigh, NC, is a global maintenance and reliability consulting company with other locations in San Diego, CA, and Ann Arbor, MI. With its opening, the company brought 25 full-time jobs to Webster and support to the local economy by bringing visitors to the city and utilizing many of the local restaurant catering services.

Now Open Pasadena – Multi-Specialty Clinic at HCA Houston Healthcare Southeast at 3801 Vista Rd. Opening soon Houston - Reunion Court of Clear Lake, a memory care and assisted living facility at 14101 Bay Pointe Court Webster – Aspire Allergy & Sinus at 1507 W. Bay Area Blvd. in Baybrook Village

Did you miss an issue of the Business Development Update? Current and previous editions can be found here: https://www.bayareahouston.com/content/News_Events_and_Reports/busines_dvlp_update

Retail / Hospitality Development For a bird’s-eye view of what’s going on in Bay Area Houston … check out Hot Projects! https://www.bayareahouston.com/content/News_Events_and_Reports/hot_projects_2

Absolute Volleyball Academy of Texas broke ground in Webster at NASA Bypass Business Park (NASA Parkway at the NASA Bypass). The 54,000 SF state-of-the-art facility will include eight indoor and eight outdoor courts, a physical training center, a pro shop, special viewing areas and more. It will be one of the largest volleyball facilities in Texas and will host year-round tournaments that will bring many athletes and their families to the area. Plans are to open by July 2020.

Did you know Space Center Houston broke an all-time attendance record early in December?

More than 1.1 million visitors!

Plans are in the works for the second phase of Virgata Commons, a mixed-use 14-acre project in Friendswood. Construction should begin in January 2020. This phase includes 36,000 SF of retail and office space. Location: 1765 S. Friendswood Drive.

Sylvan Learning Center leased at Clear Lake Center, 20814 Gulf Freeway in Webster. BAHEP member Jacob Grossman / United Equities negotiated the deal for the landlord.

Seaside RV Resort opened at 4001 Old Hwy. 146 in Seabrook with 90 spots for RV parking and another 37 spots that have access to cabins. Lots of amenities here!

Coming Soon Friendswood – Behavioral Innovations (therapy for children on autism spectrum) at 105 E. Shadowbend Drive; Chick-fil-A at 1757 S. Friendswood Dr. (Virgata Commons) early in 2020 Baybrook Mall – Woodhouse Day Spa, Blue Fish, Suit Warehouse, Kokee Tea, Share Tea Now Open Baybrook Mall – Fit:Match (retail technology pop-up) Pasadena – Bel Furniture opened in the former Sports Authority location at 3949 Fairway Plaza Drive Seabrook – Kirk and J’s BBQ at 5745 Bayport Blvd.; Jenuine Treasures (boutique) at 902 Hardesty Ave. Nassau Bay – Java Owl Coffee House at 10821 Upper Bay Road Kemah – Dan’s Pizza Wings ‘N’ Beer Deck at 800 Bradford Ave.; Ancora (small plates and beverages) at 700 Kipp Ave. League City – Texas Artisan (fine jewelry, gifts) at 2800 Marina Bay Drive Houston – Mint Dentistry at 19222 Gulf Freeway;

Webster – Stomp’s Burger Joint at 300 West Bay Area Boulevard, Tiff’s Treats at 593 W. Bay Area Blvd.; Liroma Event Center at 18201 Egret Bay Blvd.; Blitz Sports Grill & Party Bar at 803 E NASA Parkway; Pho Barr at 803 E NASA Pkwy.

Friendswood – Mod Pizza, Chipotle Mexican Grill and Jersey Mike’s at Virgata Commons; Rebecca Penny Photography at 1414 S. Friendswood Dr.; Oils R Us at 2407 W. Parkwood

Residential Development In Friendswood –  Avalon – 157 acres, 259 lots.

Master-planned, single-family community; completion of the development hinges on the completion of Friendswood Lakes Blvd.  Sterling Creek – 43 acres, sections 5, 6, 7 being rezoned to Garden Home District. The project passed the first reading. The project could include about 193 lots.  Friendswood Trails – DR Horton will build on the front two sections, about 130 lots, starting early 2020.  The Albritton – a proposed 147,000 SF project by Tannos Construction and Development on S. Friendswood Drive. Retail and restaurants on ground floor and 99 class A residential units, 620 SF1,350 SF, on upper three floors. Multi-level garage; pool and sun deck above garage.

In Santa Fe –  Tower Road Estates, 150 homes  Vicinity of Tower Road Estates, 1,750 homes are in the works  Pecan Trails, 25 homes, Hwy. 6 / FM 1764 area  Near Avenue S, approximately 300 homes are proposed.

Previously reported for our area … Lots of residential activity in progress!

La Porte –  Morgan’s Landing - Bay Area Blvd. between Spencer Highway and Fairmont Parkway in La Porte. Taylor Morrison is developing the 642-home community. Lots are 45, 50 and 60-foot; home prices will start in the $200’s. Planned amenities are swimming pools, cabanas, splash pad, walking trails and playgrounds. Read more: https://www.bizjournals.com/houston/news/2019/05/24/new-200-acre-la-porte-community-open-for-sales.html  The Brownstone Group hopes to break ground soon on two projects in La Porte, both on SH 146 at Wharton Weems Blvd. One is The Legacy at La Porte, a luxury multi-family project planned on 20 acres -294 units – one, two and three bedrooms. The other planned project is Fairmont Lakes North, a patio home community of approximately 80 homes to be built on 19+ acres.  The Brownstone Group plans a $40 million Class A multi-family project on 12.5 acres on the NWC of Canada Road and Fairmont Parkway in La Porte. The complex will have a mid-town feel and includes a two-story garage.

Taylor Lake Village  New homes coming to Taylor Lake Village – Approximately 30 homes will be built near the intersection of Academy Lane and NASA Parkway (near Kirby Road) on the canal. The homes will be elevated above the flood plain with the living area starting on the second floor of the structure. The developer of this project also plans a second phase to this project on land where the former boat store was on the hard corner of Kirby Road and NASA Parkway. This phase will include both commercial and residential components.

More details on this project later.

League City  Dirt work is underway on Davis Road in League City for a high-end residential development, 90 lots on 30 acres. Homes are expected to start in the $800’s  Town Harbour Estates, a project of Axis Point Developers, is underway on a 74-lot gated community. The developer plans to build a canal in the middle of the community to help with drainage. The 37-acre site is on Clear Lake near Lakeside Drive in League City.  Two developments in League City have advanced toward approval for development as residential and commercial centers. Two developments totaling approximately 2,585 acres are in review. Both are part of three large tracts, north of FM 517 and generally to the west of Calder Drive. The Westland tract is a proposed residential development that would add 1,000 new homes. The Duncan tract encompasses about 1,705 acres and is in three school districts. Read more here in these two articles (subscription required): https://www.galvnews.com/news/article_3d45a844-60f3-5484-942b-e69a5b5081ff.html and https://www.galvnews.com/news/article_064c6d5f-1284-5fbf-b78d-fc7f957aff59.html

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Coastal Point has been approved for development in League City. Work will start on the first phase in about 12 months. It’s a mile south of the League City Parkway, north of FM 646 and about a mile east of

South Shore Blvd. Planned are 552 residences on 202 acres.

Pasadena  Parkway Trails – K. Hovnanian is building 410 single family homes on +/- 137 acres with prices starting at the $300’s. Fairmont Parkway to Center Street, east of Red Bluff Road.  Construction has begun on a new 380-unit apartment-home complex on 21 acres at the corner of Bay Area Blvd. and Middlebrook Drive in Pasadena. The Middlebrook Apartments will include 260 apartments and 20 townhomes. Developer, Oden Hughes, plans one, two and three-bedroom units with amenities such as attached and detached garages, carports suitable for boat storage, on-site co-working space, a resort-style pool with cold spas, jogging trails and more. https://www.bizjournals.com/houston/news/2019/06/07/austin-basedmultifamily-developer-breaks-ground.html

Dickinson Work continues at Bayou Bend Estates, a 58-acre residential development in Dickinson. residential lots are planned; location is FM 517 and Country Club Drive.

Forty-seven

Infrastructure News and Everything Else!

Done deal for the Port of Galveston! A third cruise terminal – 150,000 SF at a cost of nearly $100 million - will be built on 10 acres at Pier 10. The terminal will be capable of handling Royal Caribbean’s largest ships.

Completion is expected by fall 2021. Read more: https://www.bisnow.com/houston/news/economic-development/royalcaribbean-finalizes-deal-for-third-galveston-cruise-terminal-102208

Speaking of large ships … Royal Caribbean Cruises Ltd. is bringing Allure of the Seas to Galveston in 2021.

Allure is part of the cruise line’s Oasis Class, the largest class of ships, and is 1,187 ft. long, 215 ft. wide and has a capacity for 6,780 guests plus 2,200 crew members. There are 18 total decks and 2,742 staterooms.

Allure will sail seven-night Caribbean itineraries from Galveston beginning in November 2021, after undergoing a $165 million renovation project.

In 2021, Carnival Cruise Line will be homeport to four ships at the Port of Galveston. Read more here: https://www.bizjournals.com/houston/news/2019/12/31/royal-caribbean-allure-of-the-seas-galveston.html

Did you know that in early December, the Port of Galveston set a new record … one million cruise passengers?!!

Galveston’s cruise industry contributes $115 million in local spending and generates 3,638 total jobs of which 1,695 are direct jobs.

Cruise activity generated $16.3 million in state and local tax revenue in 2018.

As one of the world’s busiest waterways, the Houston Ship Channel is a large and vibrant component of the regional economy. A recent study by Martin Associates reports that Houston Ship Channel-related businesses contribute 1,350,695 jobs throughout Texas, up 15 percent compared to a 2014 study. This activity helps generate more than $339 billion in statewide economic value, up nearly 28 percent. Additionally, nearly $5.7 billion in state and local tax revenues are generated by business activities related to Port Houston, up 12.7 percent. https://porthouston.com/about-us/economic-impact/ Galveston County – A $4.7 million county annex building is proposed in Bacliff on the site of the old community center. This project is up for approval by the County Commissioners.

Also, a new vehicle maintenance facility is planned for Dickinson and a new medical examiner’s office is planned for La Marque.

Ten acres of land were recently purchased on Broadway in Galveston between 54th and 59th streets for an expansion of the county’s bond office.

A new city center is proposed for Hitchcock. Students of architecture and urban planning have presented a comprehensive plan for the community; the students are part of the Texas Target Communities project based at Texas A&M University. Highway 6 at Main Street is the target area for the project. One version of the plan calls for City Hall to move from the south to the north side of Highway 6 creating a municipal complex along with a community center and library, and a place for new businesses and recreation. It’s a work in progress as Commissioners will need to review and possibly adopt the plan and then monitor, evaluate and update the plan as it moves along. Read more here (subscription needed): https://www.galvnews.com/news/article_3962715d-eafd-53f1a61c-14356609fe09.html

City of Seabrook was awarded a $3.9 million FEMA grant for a wastewater treatment retrofit. It will include a new facility to be located next to the city’s Public Works Complex on the north side of Seabrook.

Also, Seabrook has launched a new geographic information link on its website that allows developers or investors to scope out available properties. Look here: https://www.seabrooktx.gov/DocumentCenter/View/219/SeabrookReal-Estate-PDF?bidId=

Read here for more information: https://www.chron.com/neighborhood/bayarea/news/article/Texas-146-work-means-pain-andpromise-in-Seabrook-14941695.php

Education News …

College of the Mainland plans a new campus location in League City for general education and dual-credit classes. The facility is 27,570 SF, located at 1411 W. Main St. It will be renovated by the owner, JMK5 Holdings, for a long-term lease by the college. Construction will begin early in 2020 with an opening planned for the summer of 2020. The fall 2019 enrollment for COM was 4,702 students.

Next summer, Clear Creek ISD will start reconstruction of the Ed White E-STEM Magnet School, a $19.7 million project. As one of the district’s oldest schools, it will be brought up to current safety standards to support the magnet school’s science, technology, engineering and math curriculum. The district will also begin construction this summer on a rebuild project of Clear View High School, an alternative campus. Expected completion on the $45 million project is December 2021; capacity will be 350 students. Read more here: https://www.houstonchronicle.com/neighborhood/bayarea/news/article/School-construction-projects-strategic-plan-on-14929970.php#

Road news …

Kemah – A new road, Ralph Gordy Avenue, will be constructed off Hwy. 146 between FM 518 and the League City Pkwy. for residents and visitors who want to access retail and entertainment businesses. The road will open up more than 100 acres of land for future commercial development and create an alternative route for traffic as Hwy. 146 is widened over the next five years. The project could be expanded with an additional road segment going south to the League City Parkway. https://communityimpact.com/houston-metro/2019/05/09/ralph-gordyavenue-construction-fm-270-widening-5-bay-area-transportation-projects-to-know-for-may/

League City - The planned extension of Landing Boulevard will start construction January 2022. The project could reach $49 million. One bridge in the design is 2,772 ft. long and will be constructed over Clear Creek plus a new 1.7-mile, four-lane road connecting Landing Boulevard to the Gulf Freeway is in the plan. Read more here (subscription needed): https://www.galvnews.com/news/article_296281f8-8c65-5aea-b66e-e9e7456e8da3.html BAHEP is now part of the Facebook and Twitter network providing its members and followers yet another way to keep up with its activities.

Like us on Facebook at: https://www.facebook.com/BayAreaHoustonEcon Check out our tweets at https://twitter.com/BAHEP.

Economic development doesn’t happen by itself! If you would like to know more about how you can support our economic development initiatives and have the opportunity to work with the region’s business leaders, please contact Membership Director Harriet Pilgrim at 832.536.3255 or Harriet@bayareahouston.com.

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